The following Legal Updates provide additional information and overviews of the latest developments from the U.S. Department of Labor (DOL).
- DOL Recovers More Than $295 Million in Back Wages in 2025
- DOL Issues Updated Model Employer CHIP Notice
- DOL Releases Audit Results of ERISA Enforcement During 2025
- DOL Proposes New PBM Fee-Disclosure Rule
- DOL Publishes Informational Videos on the FMLA
- DOL Announces Proposed Independent Contractor Rule
DOL Recovers More Than $295 Million in Back Wages in 2025
OVERVIEW: The DOL recently announced that it recovered more than $295 million in back wages for nearly 177,000 employees in fiscal year (FY) 2025. The wage recoveries averaged $1,465 per worker. This is the highest recovery of back wages since 2019.
EMPLOYER TAKEAWAY: The increase in monetary recovery in FY 2025 has come as the DOL has undergone significant changes, including reductions in the department’s workforce and funding and a shift from traditional enforcement actions toward employer compliance assistance and self-reporting. In light of the increased DOL recoveries in FY 2025, employers should prioritize wage and hour compliance to limit their exposures and reduce the risk of investigations.
DOL Issues Updated Model Employer CHIP Notice
OVERVIEW: The DOL, through its Employee Benefits Security Administration (EBSA), has released a new model Employer CHIP Notice with information current as of Jan. 31, 2026.
EMPLOYER TAKEAWAY: An employer is subject to this annual notice requirement if its group health plan covers participants who reside in a state that provides a premium assistance subsidy, regardless of the employer’s location. The DOL’s model notice, which employers may use for this disclosure, is updated periodically to reflect changes in the states that offer premium assistance subsidies. Employers could also choose to prepare their own notices or modify the model notice. Employers should be sure to include at least the minimum relevant state contact information for any employee residing in a state with premium assistance.
- The EBSA’s CHIPRA webpage includes the latest model notice (English language and Spanish language versions are available), a fact sheet, a compliance assistance guide and other publications for employers and advisers.
DOL Releases Audit Results of ERISA Enforcement During 2025
OVERVIEW: The DOL has released the results of its Employee Benefits Security Administration’s (EBSA) enforcement actions during fiscal year (FY) 2025.
EMPLOYER TAKEAWAY: The DFVCP encourages plan administrators to bring their plans into compliance with ERISA’s filing requirements. EBSA received 24,513 annual reports through this program in FY 2025, and the EFAST2 Help Desk handled over 17,391 inquiries to help filers meet their reporting obligations.
- The EBSA has a dedicated enforcement webpage, which includes outlines of ERISA civil violations and criminal provisions, as well as enforcement accomplishments and national enforcement priorities and projects. There is also an agency enforcement results archive for prior fiscal years.
Major PBM Reforms Advance in Congress as DOL Proposes New PBM Fee-Disclosure Rule
OVERVIEW: Federal oversight of the pharmacy benefit manager (PBM) industry has continued to grow, driven by ongoing efforts to strengthen transparency and regulatory accountability. On Feb. 3, 2026, the Consolidated Appropriations Act (CAA) of 2026 was signed into law, a funding package containing a broad range of healthcare provisions, including significant PBM industry reforms. Separately, the DOL announced on Jan. 28, 2026, a proposed rule that would establish new PBM fee-disclosure obligations, further underscoring the federal government’s increasing focus on regulatory oversight of the industry.
EMPLOYER TAKEAWAY: Similar to the CAA bill, the DOL’s proposed rule would significantly expand PBM disclosure obligations under ERISA’s compensation disclosure provisions by implementing an April 2025 Executive Order aimed at improving employer health plan transparency regarding PBM compensation.
- While the proposal excludes fully insured group health plans, the DOL stated that disclosure obligations for these plans are being reserved for future action and specifically requested public comments on this issue. Public comments on the proposal are due on or before March 31, 2026.
DOL Publishes Informational Videos on the FMLA
OVERVIEW: In connection with the 33rd anniversary of the federal Family and Medical Leave Act (FMLA), the DOL has posted a new series of short videos about the statute on its website.
EMPLOYER TAKEAWAY: The DOL has added to its online resources for employers and employees with seven employer-facing videos, running approximately two to four minutes each, under the following titles: Covered Employer; Employee Eligibility; Qualifying Reasons; Certification Process; Military Related Leave; During Employee’s Leave; and FMLA Prohibitions. Employers looking for a quick overview of various aspects of the FMLA may find the new videos helpful.
DOL Announces Proposed Independent Contractor Rule
OVERVIEW: On Feb. 26, 2026, the U.S. Department of Labor (DOL) announced a proposed rule that would rescind the department’s 2024 final independent contractor rule and replace it with an analysis for employee classification under the Fair Labor Standards Act (FLSA) similar to the one adopted by the DOL in 2021. The proposed rule was published in the Federal Register on Feb. 27, 2026.
EMPLOYER TAKEAWAY: The 60-day public comment period for the DOL’s proposed rule ends on April 28, 2026. The department encourages all interested parties to submit comments on the proposed rule once it is published in the Federal Register. Employers should monitor updates on the proposed rule, including the publication of a final rule and any related legal challenges. If the final rule takes effect, employers may consider modifying existing practices and policies to comply with the new standard for employee classification under the FLSA.
This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2026 Zywave, Inc. All rights reserved.
